Intel CEO Pat Gelsinger recently emphasized the urgent need for "the world’s most resilient supply chain" in response to global challenges. Currently, 80% of the tech supply chain is concentrated in Asia, raising security concerns. The upheaval caused by the pandemic, conflicts in Israel/Gaza and Ukraine, and tensions in Taiwan highlights the necessity for a stronger and less vulnerable supply chain as we transition to the AI economy.
Gelsinger stressed that Intel must prioritize sustainable supply chains for long-term stability. His comments coincided with the announcement of Intel Foundry, a new chip manufacturing business that aims to produce chips for various clients, much of it in the U.S. thanks to incentives from the U.S. Chips and Science Act. Intel has already secured $15 billion in customer commitments for Intel Foundry.
During the event, U.S. Secretary of Commerce Gina Raimondo stated that the COVID-19 pandemic exposed vulnerabilities in the tech supply chain. She called for a return to American chip production and emphasized the need to create hundreds of thousands of research and engineering jobs domestically.
Raimondo praised Intel as a cornerstone of American innovation but cautioned that merely constructing ten factories would be insufficient. Gelsinger reaffirmed the relevance of Moore’s Law, which predicts that chip capacity and performance would double approximately every two years. He noted Intel's latest graphics processing unit features over 100 billion transistors, showcasing remarkable advancement since the Intel 4004 CPU, which had just 2,300 transistors in 1971.
Gelsinger pointed out that the digital economy currently drives 15% of all economic activity, projecting that this will increase to 30% by 2030. "We are stewards of the digital economy,” he asserted.
The tone at the event reflected a growing sense of nationalism, reminiscent of the challenges posed to the chip industry by Japan in the 1980s.
Microsoft CEO Satya Nadella confirmed that the company plans to develop an AI chip using Intel’s foundry services. Meanwhile, Stuart Pann, head of the Intel Foundry business, referenced Chris Miller's book Chip Wars, asserting Intel's pivotal role in technology over the last half-century. Pann signaled a time of transformative change, with Intel committing to 100% renewable energy sourcing by 2030 and enhancing technology for U.S. military advantages.
Intel's influence extends to the second-largest supercomputer, powered by 100,000 CPUs and 300 miles of cabling. As reported, AI could consume as much electricity as an entire country, prompting Intel to focus on more cost-effective energy solutions.
Pann announced that Intel Foundry has partnered with 30 companies, identifying Arm as its most crucial partner. Arm's CEO, Rene Haas, joined Pann on stage to celebrate this significant collaboration. Mediatek and Broadcom are among other partners that have joined Intel's foundry initiative.
With Intel’s commitment to innovation and collaboration, the future of the chip industry seems set for a major evolution.
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